Tag Archives: business model

Think back for a minute to 2008 when Groupon opened shop. Can’t remember? If you’re like me, you probably don’t recall the first time you signed up to receive daily deals in your inbox–it just sort of happened. And, if you’re like me, you may have even thought “how can this type of site possibly last?” But, if you’re like me, you drank the Kool-Aid and before you knew it, you were getting Groupon emails everyday, were using the Groupon app and eventually signed up with other daily deal sites like LivingSocial or DealChicken or one of the other nearly 800 daily deal sites.

According to the infographic below, the Groupon business model is starting to crumble with one in three daily deal sites having already failed. Groupon itself has been failing pretty miserably for the last year or so. In fact, between a saturated market and retailers who claim to ‘hate’ Groupon for the small profit margins the deals bring in, Groupon could soon be history.

I think it’s pretty clear deal sites will continue to close left and right. However, I’m not so sure the end is coming as fast as this infographic claims. What do you think? Does Groupon have time to turn business around and get back in it for the long hall? Will another daily deal site rise to the top? Or is it just a matter of time before the entire ‘Groupon Bubble’ bursts?

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